Weekly Market Reports


29 March 2019

admin Macwool - Friday, March 29, 2019

 WEEKLY MARKET REPORT 

Week Ending 29th March, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S39/18

This Week

M39/18

Last Sale

S38/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2513

2447

2538

-25

2764

-251

18

2437

2359

2457

-20

2301

+136

19

2316

2296

2331

-15

2037

+279

20

2293

2274

2298

-5

1922

+371

21

2279n

2263

2283n

-4

1888

+391

26

1425n

1433n

1408n

+17

1198 (M)

+227 (M)

28

-

1178

1165n

+19 (M)

871 (M)

+307 (M)

30

-

945

-

+16 (M)

614 (M)

+331 (M)

MC

1142

1109n

1172

-30

1332

-190

A TALE OF TWO SALES!!

Week 39 saw 37,400 bales go to auction, 5700 less than last week. Unfortunately there was another decline in the Australian wool market (even with the 7.5% drop in supply) which saw 11.8% passed in. The AWEX EMI came back for the fifth consecutive week closing at 1947, a decrease of 16. There were considerable discounts once again this week, especially on the lower yielding wools, under 60%, which made up 30% of the merino fleece nationally by week. A report from AWEX explains that this week was the highest percent of low yielding wools since the 2009 drought. This is definitely a driving factor at the moment as lower yields mean extra processing, extra cost and more chance of damaged valuable fibre. As we look into the future, even if we get this rain that has confidently been predicted this weekend, (all fingers crossed) buyers and processors realise there is going to be a lot more of these types of wool coming through the system for a good length of time yet. As quoted by AWI, “With most of our wool destined for export in the greasy form, the low yield means far less clean kgs are able to be placed into shipping parcels/containers. Container shipment to China is much cheaper than all other destinations so decreased shipping of clean kgs is problematic but relatively negligible in the big cost/picture but with the European and Indian shipping costs ranging from 3 to 5 times higher, the lower yields either take competition away or depress prices due to conversion to clean kg.” Another factor included in the decreasing value of our wool is the constant flow of high mid-break wools. This week saw 76.8% of the Australian merino fleece under 40 nkt. Any better style wools with low VM, sound and higher yields are definitely making a premium in the merino fleece market which is still strong.

Merino skirtings had another solid week. Buyers seemed enthusiastic as the auction kicked off and left the skirtings generally unchanged, still helping the average for woolgrowers. The downside for the room 2 wools was the Cardings giving up 30 - 42c nationwide but still closing at an average of 1113c/kg.

Definitely on the positive side once again the XBs have added to the indicators. Very strong buyer support has helped the XBs rise by 15 to 20 cents with the broader 32 microns taking the biggest leap.

Next week sees us taking 814 bales to the auction. Let’s hope the market heads in a positive direction and see the EMI break back through the 2000 mark!

            Ag Concepts Fwd Prices as at 29 March 2019               

Micron

Date

Low

High

21 17-Apr-19 2250 2250 
21 9-Oct-19  2095 2095 

Main Buyers (This Week)

1

Techwool

4990

2

Fox & Lillie

4000

3

Seatech Ind.

3511

4

Aust. Merino

2865

5

PJ Morris Wool

2311

6

Tianyu Wool

2198

Eastern Market Indicators (AUD cents/kg clean)

1947 cents ê 16 cents compared with 22/03/2019

Northern Market Indicators (AUD cents/kg clean)

1993cents ê 14 cents compared with 22/03/2019

AUD/USD Currency Exchange

0.7097 ê 0.0048 compared with 22/03/2019

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